Cloud accounting software brings a myriad of benefits to the accountant’s fingertips – quite literally, because anytime, anywhere access is one of its most popular conveniences. But before we dive into the benefits of cloud accounting, why don’t we get a clear idea of what exactly it is.
You actually use cloud computing all the time without even knowing it. For example, you are using a cloud – although indirectly – when you access your bank account data or make payments online and when you upload a photo or a video on Instagram.
Instagram stores all your data on a cloud – which is why you can always access the latest posts, likes, and comments, not to mention all your prior posts – and when you use cloud accounting software, your accounts are similarly stored on a cloud.
As you can imagine, cloud accounting software unlocks a whole host of conveniences for businesses – and not just for the accounts department either, but for everyone logging expenses and raking in (or spending) the company’s capital.
On the go access
Especially in the context of today’s work-from-anywhere working trend, on-the-go access is by far one of the most quoted benefits of cloud accounting software. This is especially significant because business owners have bigger fish to fry on most days – their attention is already divided between bringing in the right talent and then directing daily workflow, managing clients and suppliers, being the face of the company and of course, there’s always a fire to put out, a crisis to manage.
When they do have a moment to devote to the company’s financial data or insights that could be used to better manage the business, the data had better be right there, ready to be dissected.
The environment that today’s businesses operate in is extremely fast-paced. There is no room for a miscalculated move or an under-calculated move. This means that decision-makers cannot be working out of last month’s data. In today’s era, last month’s data could be pretty much meaningless because things are changing so fast. Imagine a business owner making a decision as the target audience moves into an unlock phase – based on data from last month when his audience was under lockdown. You get the idea.
A lot of cloud accounting software options are also able to offer spontaneous business insights because of the volume of company data that they are processing.
Whether it is a payment for a sale made, or a debit for supplies purchased or tax deducted, or tax reimbursed, all transactions on your bank account flow seamlessly to your cloud-based accounting books. This comes with several advantages:
- It saves time, allowing your accountants and the rest of your team to focus on more demanding duties
- Automation minimises errors, duplication, and omission
- Everything is automatically up to date, all the time
Easier collaboration and tracking
Cloud accounting software makes it easier for business owners or management, team leaders, and employees on the field to contribute to financial documents. Everyone can observe the targets, projections, and progress.
Approvals are also easier to make and track with cloud accounting software. Additionally, as businesses grow, the software usually lets users add other layers or tiers to the approvals process, to match a larger company’s hierarchy.
Tracking the amount of time devoted to various client projects and zeroing in on pending payments from clients or pending paperwork from suppliers are also simplified by cloud accounting.
Just like your bank data and your social media profile is protected by encryption, your books of accounts stored on the cloud are also encrypted. Encryption ensures that access is denied to anyone who does not have a valid login. This is certainly a step ahead of excel spreadsheets saved on laptops and computers and far more secure (and more sustainable) than paper-based accounting.
Your data is usually protected by one – or more likely several – layers of the firewall to combat any spyware or hacking.
All that said, choose your cloud accounting software with care. A solution like Dext, which is chosen by nine out of 10 accountants and a million businesses globally, might be a safe bet. Dext also has the USP of photo-based data entry where the system can capture data even from a photo. Are you sold on the benefits of cloud accounting software yet? Click here to find more about cloud accounting software.